What's The No. 1 Car-buying Mistake?

New Cars 2001

October 22, 2000|By Heather McPherson of The Sentinel Staff

Answer: Not reading and understanding the contract before signing it. Salespeople will "throw papers at you," said Thomas Dinkins, an administrator with Florida's Division of Motor Vehicles. "A lot of people don't read the contract until after they've taken it home, and they're shocked at what they've signed."

A: That will depend on the supply and demand for the car you're buying, but generally speaking, figure about 3 percent to 5 percent of the invoice price.

Q: Is there a grace period after I buy a new car during which I can change my mind?

A: No. Once you take possession of the car and drive it off the lot, it's yours.

Q: Are extended warranties -- which cost extra but extend the life of the manufacturer's warranty -- a good idea?

A: As a rule, no. The manufacturer's warranty that comes with the new car should suffice. If there are problems with the car, they likely will occur within the regular warranty's period.

Q: Is it better to buy a new car or lease it?

A: If you're the frugal type who plans to keep the car for a number of years, you're better off buying. You'll own the car outright once your car payments end, and there will be plenty of life left in the car if you keep up regular maintenance.

Q: What if I plan to trade for a new car in a couple of years?

A: Then leasing may make more sense, as long as you don't drive more miles than spelled out in the lease agreement. Your car payments will be lower because you're not paying for the entire value of the car. Rather, you're paying for the depreciation of the car during the lease term, plus interest. Although you aren't building any equity -- you give up the car at the end of the lease agreement -- you get to move on to another new car, again with lower monthly payments than you would have if you were buying.

Q: Whether I buy or lease, should I use my current car to help negotiate a better deal?

A: Most experts recommend negotiating the price of the new car before negotiating a trade-in price for your old one. Mixing the two means you won't know what the dealer is really charging for the new car. You can find out the value of your car by consulting the NADA Official Used Car Guide, available in most public libraries and insurance agencies. Or check out the Kelley Blue Book Web site at kbb.com or traderonline.com, which lists hundreds of thousands of ads for used vehicles.

Q: If I have a complaint after I've signed the contract and taken possession of the car, to whom do I turn?

A: Car dealers depend on repeat customers and word-of-mouth advertising. They prefer happy customers to unhappy ones. You should take your complaint to the dealer, beginning with the salesperson who sold you the car and moving up the hierarchy -- all the way to the owner if you have to -- until you are satisfied.

Q: And if I'm not?

A: Contact the car manufacturer, which also has a stake in keeping you happy. If that doesn't work, contact your regional Division of Motor Vehicles office. Orange, Seminole and Osceola counties are covered by the Region 5 office in Winter Park. The number is 407-623-1102. Volusia and Brevard counties are handled by the Region 4 office in DeLand. Call 904-740-3821. Lake County is handled by the Region 2 office in Ocala. Call 352-732-1267.

Q: Will these offices go to bat for me?

A: To a point. They will act as a mediator between you and the dealer, trying to reach a solution. But they won't be your advocate.

Q: Will the regional DMV office help me if the dealer sells me a lemon?

A: No, you have other protections for that. Florida's Lemon Law covers new cars for their first 18 months or first 24,000 miles, whichever comes first. If the dealer can't repair a manufacturing defect with three tries, or if the car is out of service for a total of 15 or more days for repairs, your Lemon Law rights kick in.

Q: Does that mean I get a new car or my money back?

A: You might, but it will take a while. There are a series of steps that must be taken, beginning with a certified letter from you to the manufacturer outlining the problems you've had with the car. The manufacturer is given a chance to make things right. If it can't, the issue will wind up with the state's New Motor Vehicle Arbitration Board. The procedure takes several months, but if it gets that far, chances are good you will receive a refund or replacement vehicle.

Q: Is there any way to get a new car without having to deal with dealers?

A: Yes, for a price. There are national auto-buying services that, for fees ranging from $165 to $440, will find you the car you want at a price that's probably lower than you'd pay on your own. Auto-buying companies include: